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Rail Cost Indexes

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​Rail Cost Indexes

Railroad Cost Recovery Index (RCR)

The RCR is a price index that measures changes in the price level of inputs to railroad operations: labor, fuel, materials & supplies, and other operating expenses. The RCR, which has been produced in its current form since 1977, is published quarterly in Association of American Railroads (AAR) Railroad Cost Indexes. This publication contains both quarterly and annual versions of the RCR for the United States as a whole, and the east and west regions. In addition, AAR Railroad Cost Indexes contains other railroad-related indexes such as the All-Inclusive Index and the Rail Cost Adjustment Factor.

Rail Cost Adjustment Factor (RCAF)

The RCAF was established in response to the requirement in the Staggers Rail Act of 1980 that a quarterly cost-recovery index be created. Each quarter, the AAR submits the RCAF index to the Surface Transportation Board for approval. (Includes the RCAF-U and RCAF-A).

All-Inclusive Index Less Fuel (AII-LF)

This index was created to provide a parallel measure of the Rail Cost Adjustment Factor without the influence of the fuel cost component. All of the components (Labor, M&S, etc.) used in the All-Inclusive Index Less Fuel match those of the All-Inclusive Index used to calculate the Rail Cost Adjustment Factor. In addition, a forecast error adjustment to the All-Inclusive Index Less Fuel is also calculated using the same methodology applied in the Rail Cost Adjustment Factor.